Question 3 View Policies Show Attempt History Current Attempt in Progress At December 31, 2022, Pronghorn Corporation reported the following plant assets. Land $3,498.000 Buildings 12,725,450 Less: Accumulated depreciation-buildings Equipment $26,630,000 13,904,550 46,640,000 5,830,000 Less: Accumulated depreciation-equipment 40,810,000 Total plant assets $57,033,450 During 2023, the following selected cash transactions occurred. Apr. 1 Purchased land for $2.565,200. May 1 Sold equipment that cost $699.600 when purchased on January 1, 2016. The equipment was sold for $198.220. June 1 Sold land for $1,865,600. The land cost $1,166,000. July 1 Purchased equipment for $1,282,600. Dec. 31 Retired equipment that cost $816,200 when purchased on December 31, 2013. No salvage value was received. Journalize the transactions. Pronghorn uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 40-year useful life and no salvage value; the equipment is estimated to have a 10-year useful life and no salvage value. Update depreciation on assets disposed of at the time of sale or retirement (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit April 17 Land 2.565.200 Cash 2,565,200 May1 Depreciation Expense Accumulated Depreciation Equipment (To record depreciation on equipment sold) Cash 198.220 Accumulated Depreciation-Equipment 303160 Gain on Disposal of Plant Assets 501330 Equipment 699,600 June 1 Cash 1,865,600 Land 1,166,000 Gain on Disposal of Land 699,600 Equipment 1,282,600 Cash 1.282,600 Depreciation Expense 816200 Accumulated Depreciation Equipment 816,200 (To record depreciation on equipment retired) Accumulated Depreciation Equipment 816,200 Equipment D 816.200 816,200 Record adjusting entries for depreciation for 2023. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 Depreciation Expense Accumulated Depreciation-Buildings (To record depreciation on buildings.) Dec 31 Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation on equipment.) Prepare the plant assets section of Pronghorn's balance sheet at December 31, 2023. (Hint: You may wish to set up T accounts, post beginning balances, and then post 2023 transactions.) (List Plant Assets in order of Land, Building and Equipment.) PRONGHORN CORPORATION Partial Balance Sheet December 31, 2023 Plant Assets Land Land 4897200 Buildings $ 26,630,000 Less : Accumulated Depreciation-Buildings Equipment Less : Accumulated Depreciation Equipment Total Plant Assets
